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Real Estate Investment Reached 10.300 Million In 2015, Lower Than That Of 2007

15 February 2016 – La Vanguardia

The investment in the tertiary real estate sector in Spain reached EUR 10,300 million in 2015, an amount surpassed only in the past decade by the 10,800 million registered in 2007, according to a report by Cushman & Wakefield.

The last quarter of 2015 saw unremembered business volumes with 3,800 million invested, well above the quarterly average for the last years, resulting in a growth of 61% over the previous quarter and 33% over the same period of 2014 .

The major players in the market were the SOCIMIs, which reached 68% of the investment in the fourth quarter.

Nearly 83% of the investment is concentrated in offices and commercial sectors, with the office sector the one capturing the most investment with nearly 69% and EUR 2,600 million.
A percentage that contrasts with the 48% registered in the previous quarter.

The commercial sector was second with 600 million, 33% lower than the previous quarter. Activity in the industrial sector increased again after the downturn of the third quarter and captured 6% of the total investment.

In addition, in 2015 there has been a decline in large transactions. While in 2014 the weight of transactions over 100 million represented more than two thirds of the amount invested, in 2015 it only reached half of that amount.

Last year, the activity of domestic investors increased its relative weight, representing 60% of the total volume and much of the foreign investment came from the traditional Europe, approximately 15%.

In 2015 yields have continued to fall in almost all sectors. However, this yield drop has been slowing in the industrial sector.

By 2016, the consulting firm expects that investment in commercial assets goes back to show high activity, since they are trading large transactions as that of El Corte Ingles and the placing on the market of more shopping centers, which is expected to be closed between the short and medium term.

The office sector is expected to remain strong, but it is foreseeable that the levels seen in the fourth quarter of 2015 are reduced.

Original story: La Vanguardia

Translation: Aura Ree